Where Will Take-Two Stock Be in 3 Years?

Core Viewpoint - Take-Two Interactive is experiencing a positive trend in its stock price, driven by strong sales from its video game franchises, particularly Grand Theft Auto [1] Group 1: Stock Performance and Market Expectations - Take-Two's stock is gaining attention as the release date for Grand Theft Auto VI approaches, with the current version, Grand Theft Auto V, having sold over 215 million copies since its 2013 release [2] - The stock has historically performed well, doubling within three years of the GTA V release and achieving a remarkable 1,230% increase to date [2] - Wall Street anticipates record revenue for Take-Two, with non-GAAP revenue estimates reaching $9 billion by fiscal 2027, up from $5.6 billion in the recent fiscal year [7] Group 2: Anticipated Sales and Demand - The Grand Theft Auto series has sold a cumulative 450 million copies, making it one of the best-selling franchises of all time, with each new release expanding its popularity [5] - The second trailer for GTA VI garnered a record 475 million views within the first 24 hours, indicating significant pent-up demand from players [6] - The launch of GTA V was a pivotal moment for Take-Two, nearly doubling the company's revenue from $1.2 billion to $2.3 billion in fiscal 2014, suggesting that the next release could generate even higher sales [7] Group 3: Future Stock Projections - The stock is currently trading at a price-to-sales (P/S) multiple of 7, which is below the 8.5 multiple that Microsoft paid for Activision Blizzard, indicating potential undervaluation [10] - If the stock maintains its current P/S multiple, it could see a price increase in line with revenue growth, with fiscal 2027 bookings estimates being 60% higher than trailing-12-month bookings [11] - Investors can expect a potential return of around 50% from current share prices over the next three years, assuming continued strong performance [11] Group 4: Management and Strategic Focus - Take-Two's management is planning several other releases to enhance shareholder returns and is focused on cost management to improve profit margins [14] - The company is well-regarded for delivering high-quality gaming experiences, which supports the expectation that it is more likely to exceed sales estimates rather than miss them [13]